Casino Gambling May Continue At Tropicana Under Icahn's Rule

Carl Icahn was supposed to be the man that triggered interest in the Tropicana Casino and Resort in Atlantic City. He put in what many believed was going to be the bid that led to others, but it appears that did not happen.

The Friday deadline came and went and Icahn's bid was still the only one. Icahn put in what is referred to as a stalking-horse bid in bankruptcy court. It is necessary for the bankruptcy court to start with this type of bid when trying to sell a property.

There is a possibility that a bid could have come in for the casino after the 5PM deadline Friday, but it would be much more difficult for that bid to be approved. If it came after the deadline, the bid would have to be approved by the bankruptcy court.

Icahn's bid was well below what the Tropicana could have commanded back before the economy in the US fell apart. It had been rumored that the casino could have been sold for $1 billion. Instead, Icahn and his group of partners may steal the Tropicana.

Even with the low price, there is no guarantee that Icahn can help the casino resort survive. Atlantic City casino revenue has fallen to catastrophic numbers in the past few months, with visitors to the casinos down as well.

Casino bankruptcy sales are nothing new for Icahn. He has already bought and turned over the former Sands Casino Hotel. He bought the casino for $65 million, then sold it six years later to Pinnacle Entertainment for a profit of $205 million.

May 30, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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